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The company reported fiscal first quarter earnings of $1.80 per share on revenue of $3.08 billion. Analysts were expecting the company to report earnings of $1.68 per share on revenue of $2.98 billion.
The top-line beat was driven by record revenue from the company's data center segment, which saw sales rise 80% year-over-year to $1.14 billion.
Shares of Nvidia were fluctuating between a slight loss and a slight gain after-hours, but were recently trading flat at $351.28.
“NVIDIA had an excellent quarter. The acquisition of Mellanox expands our cloud and data center opportunity. We raised the bar for AI computing with the launch and shipment of our Ampere GPU. And our digital GTC conference attracted a record number of developers, highlighting the accelerating adoption of NVIDIA GPU computing," CEO Jensen Huang said.
Despite this, the company's shares fell 0.7% to $348.54 after hours.
The company completed its $7 billion purchase of Mellanox on April 27.
Unlike many other companies during the coronavirus pandemic, Nvidia did not shy away from issuing forward guidance. The company expects revenue of $3.65 billion at the midpoint. Analysts were expecting revenue of $3.15 billion next quarter.
Nvidia's professional visualization segment reported revenue of $307 million, which was down 7% sequentially, but up 15% year over year.
Earlier this week, analysts at BMO Capital upgraded Nvidia's stock to outperform while also raising its price target to $425 from $285 on bullishness about the company's data center performance.
"While the CPU will always be an important part of the solution, the GPU, and specifically what NVIDIA has done with its GPU along with its software architecture, positions the company uniquely to be the prime beneficiary as we look over the next five years or so," BMO's note said.